Drought impacts on cattle ranching continue
The U.S. Department of Agriculture this week announced $11.8 million in additional financial and technical assistance to help livestock and crop producers reduce the impacts of drought, signaling efforts to continue helping farms and ranches hit by the moderate or worse drought conditions affecting 54 percent of the country.
These widespread drought conditions have been providing cattle producers more incentives to thin their herds on top of last year’s record liquidation, a trend Sageworks Inc. recently noted when it released a financial update on privately held cattle ranching and farming businesses.
Sageworks’ financial statement analysis showed privately held cattle ranching and farming businesses have experienced a nearly 30 percent increase in revenues over the last 12 months. Profit margins are also improving.
See Sageworks’ data release on cattle ranching and farming businesses here.